The Senate Judiciary Committee meeting to vote on the nomination of Todd Blanche as attorney general planned for Thursday, July 30, was postponed as Senators John Cornyn (R-TX) and Thom Tillis (R-NC) pushed for the proposed anti-weaponization fund to be more formally put to rest and the IRS immunity deal for the President's family and businesses reached by the Justice Department clarified in exchange for their votes.

"If I'm a Democrat, I would hold this over our heads," Senator Tillis told reporters July 30 regarding the deal, according to CBS News. "That's why it needs to go. It's politically tone deaf, and the policy is horrible." Senator Cornyn said a floor vote on the nomination next week seemed unlikely, though there are reported aspirations for clearing the nomination before the August recess after a potential Committee vote early next week. In a social media post, President Trump noted that Blanche "will remain, in any event, as Acting" AG and that "I have no objection to temporarily withdrawing Todd's name, if they do not do the right thing, and putting him back after Cornyn and Tillis are out of office."

Still, the Senate Finance Committee's markup of the bipartisan Taxpayer Assistance and Service (TAS) Act went on as scheduled despite the earlier speculation that the Judiciary activity and talks with the Administration, both of which were unresolved by the time of the SFC executive session on July 30, would give Republicans cover to vote against an amendment on the IRS immunity issue.

The TAS Act ultimately passed on a 26-1 vote, with Senator Elizabeth Warren (D-MA) the lone 'no' vote. Ranking Member Ron Wyden's amendment to the bill banning the IRS from entering into tax audit immunity agreements for a sitting president, their family, or related entities — nullifying the current agreement — and requiring Treasury to report to Congress about any such immunity agreements was defeated on a 13-14 party-line vote. Senators Tillis and Cornyn voted 'no' despite the stalled talks in relation to the Judiciary activity. Tillis said at the SFC markup that the negotiations were proceeding in good faith.

Chairman Mike Crapo (R-ID) said the Wyden amendment would have made the bill partisan, rather than bipartisan. "This is not the place — it's being resolved in another situation in another committee," he said.

The TAS Act includes provisions intended to digitize more tax returns, expand online accounts, streamline Chief Counsel reviews of offers-in-compromise, allow the U.S. Tax Court to hear cases relating to refunds and otherwise clarify the court's authority and jurisdiction, establish new tax preparer penalties, and provide new authorization for the Office of Appeals.

A Chairman's modification added in a bill (S. 5133) by Senators Chuck Grassley (R-IA) and Maggie Hassan (D-NH) to require information returns for some categories of income to be filed with the IRS by January 31 of the following calendar year, aligned with the date the statements are provided to recipients, to curb fraudulent returns using stolen identities. The modification also clarified and expanded the definition of electronic filing identification number (EFIN) and provided for establishment of an EFIN validation program, following a July 23 bill (S. 5111) on the issue from Senators Catherine Cortez Masto (D-NV) and Marsha Blackburn (R-TN).

More information about the markup is here.

Senate — The tensions between the Administration and Senators Cornyn and Tillis — both of whom are out of the midterm re-election race after some degree of prior conflict with the President — coincided with President Trump's challenging Senate Majority Leader John Thune (R-SD) to provide the votes for the SAVE America Act voter ID and citizenship bill. Thune has said he doesn't have the requisite votes to pass the FY2027 budget resolution — which the House drafted with reconciliation instructions for SAVE Act provisions, defense funding, and farm aid — but has talked about increasing the defense funding portion.

There have also been suggestions that the Senate could seek to broaden the scope of the reconciliation measure provided for under the budget. "Republicans anticipate giving a number of Senate committees instructions for the bill, setting up a lengthy and politically painful process ahead of adoption despite pushes for urgency from the White House," Politico Inside Congress reported this morning.

Another major part of the pre-recess agenda is a potential continuing resolution (CR) to fund the government beyond the end of the current fiscal year on September 30 into December. Majority Leader Thune July 30 took a step toward consideration of the legislative vehicle for the Senate CR, the House-passed African Growth and Opportunity Act (AGOA) Extension Act (H.R. 6500), and a procedural vote is set for 5:30 p.m. on Monday, August 3. Senate Democrats say they want to avoid a government shutdown, despite Republican assertions that the other party wants that scenario before the elections.

Among undecided issues with regard to the CR is whether it could address Democratic concerns related to, as a July 30 NOTUS report stated, "the Trump administration's recent admission in court that it canceled grants for clean energy programs that Congress approved solely based on whether states voted for Trump in the 2024 election."

There is also expected activity toward other items with a September 30 deadline, which will be just around the corner when the Senate is scheduled to return September 14 from the August recess slated to begin at the end of next week.

Senate Agriculture Committee Chair John Boozman (R-AR) expects to hold a markup of the farm bill next week and has already hinted to the press that he may include a delay in One Big Beautiful Bill Act (OBBBA/OB3) changes to the Supplemental Nutrition Assistance Program (SNAP) that Democrats wanted but was absent from the version from June 23. The OB3 tightened eligibility based on work requirements and immigration status and shifted a greater share of costs to states starting in October 2027.

On another September 30 deadline, the highway bill, a July 30 Politico story, "Capito eyes surface extension through Dec. 11; would ride on CR," cited Senate Environment and Public Works Committee Chair Shelley Moore Capito (R-WV) — who said last month that a short-term highway bill extension may be needed, though not through the duration of the next fiscal year — as saying she envisions an extension being approved as part of the CR and lasting through the same end date, which would likely be December 11.

IRS — New this morning: IRS proposed regulations (REG-115145-25) that relate to allocating foreign taxes of foreign corporations affected by the repeal of the one-month deferral election and to the disallowance of foreign tax credits on certain distributions of previously taxed earnings and profits.

There is also a new notice requesting comments on IRS Form 990 and other forms used by nonprofit organizations.

Nominations — The Senate July 30 passed 50-47 a resolution (S. Res. 817) approving nominations en bloc, including for four Treasury positions:

• Francis Brooke to be Deputy Secretary of the Treasury
• Erin Browne to be Under Secretary of the Treasury for International Affairs
• Sriprakash Kothari to be Assistant Secretary of the Treasury for Economic Policy
• George McMaster to be Assistant Secretary of the Treasury for Financial Markets

Hearings — The Senate Finance Committee has scheduled a hearing entitled, "Exploring Process Approaches for Addressing Social Security Solvency" for Wednesday, August 5, at 10 a.m. Witnesses are Marc Goldwein of the Committee for a Responsible Federal Budget, Nancy LeaMond of AARP, and Charles Blahous of George Mason University. Blahous was Executive Director of the Social Security commission that operated under President George W. Bush in 2001 and held other economic roles in that Administration.

The Finance Subcommittee on Health Care has scheduled a hearing, "Building a Resilient Health Care Future with Biotechnology," for Tuesday, August 4 at 10 a.m. Witnesses are Alan Palkowitz of the Indiana Biosciences Research Institute (IBRI), Kevin Outterson of Boston University, Vera Luther of Dartmouth Health, and Michelle Rozo of the National Security Commission on Emerging Biotechnology.

Bill introductions — On July 29, Senate Finance Committee member Roger Marshall (R-KS) introduced a bill (S. 5156) to provide for in-service rollovers for individual retirement annuity purchases.